This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Golub Capital BDC's CEO Discusses F2Q12 Results - Earnings Call Transcript

Stocks in this article: GBDC

David Golub

Thank you, operator and good afternoon everyone, thanks for joining us today. I am joined by Ross Teune, our Chief Financial Officer. Yesterday in the afternoon we issued our second quarter earnings press release and we posted supplement earnings presentation on our website. We’ll be referring to that presentation through the call today.

I am going to start by providing an overview of the March 31, 2012 quarterly financial results. And then Ross is going to take you through the quarterly results in more detail. I’ll come back after Ross comments and provide some commentary on the termination of our total return swaps in April and also provide an update on current market conditions.

With that let me get started. As highlighted on page one of the investor presentation, we’re pleased to report we had a very strong quarter for the three months ended March 31. Golub Capital BDC generated net income of $11.4 million or $0.48 per share as compared to $6.2 million or $0.28 a share for the quarter ended 12/31/11. Net investment income for the quarter was $7.1 million or $0.29 of share as compared to $6.3 million or again $0.29 a share for the quarter ended 12/31.

Net investment income including the net spread payments of $1 million generated from the underlying assets in the total return swap was $0.33 per share for the quarter ended 3/31/2012 and that compares to $0.32 per share for the quarter ended 12/31/11. Let me give you some detail underlying the $0.19 per share, the $4.4 million of net realized and unrealized gains on investments and derivatives during the quarter.

First, let’s look at the total return swap. GAAP net realized and unrealized gains on the total return swap were $2.8 million and that was comprised of $1.8 million of unrealized gains driven primarily by a market rally in the prices of broadly syndicated loans during the quarter as well as an increase in the net interest accrued on the TRS. In addition to that we had a million dollars of realized gains from the quarterly cash settlements of the TRS. I will come back later in our commentary to describe the P&L impact of the termination of the swap that took place in the April as I will discuss. There was a further gain that will take into the income statement in the June 30 th quarter.

Now let’s talk about investments in loans and equity securities. Net realized and unrealized gains on investments were $1.2 million. This was comprised of $2.8 million realized loss on the sale of a non-earning asset [AFPG], $3 million of unrealized depreciation because the carrying value of that asset was actually lower than the sale value and a $1 million of unrealized appreciation on the investment portfolio and this was broadly distributed across a variety of middle market debt and equity securities.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs